AB 449: Income taxes: administration.

Under existing law, the Franchise Tax Board is authorized to impose a penalty for failure to file a return upon notice and demand and failure to furnish information in response to a written request. Under existing law, this penalty amount is 25% of the amount of tax determined to be owed or of any deficiency tax assessed by the Franchise Tax Board.

This bill would instead bill, instead, for taxable years beginning on and after January 1, 2018, would reduce the penalty amount that the Franchise Tax Board may impose to 15% of the amount of total unpaid tax as of the date and time the notice and demand is issued or of any deficiency tax assessed. The bill also would require the Franchise Tax Board, upon request by a taxpayer, to abate this penalty if the Franchise Tax Board has not imposed on the taxpayer a penalty for these reasons in the year of the request or prior 4 years and, as of the date of the request for abatement, the taxpayer has filed the information or return and has paid all tax due.